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12.05.2005
uaBB credit rating assigned to upcoming bond issue of the TPC Orchidea Ltd.
Credit-Rating said today it assigned its “uaBB” national scale long-term interest-bearing bond issue credit rating to Orchidea, Ltd. The amount of the planned issue (A, B series) is 5 million UAH for a term of five years. The main activity of the company is wholesale foodstuffs trade.
Positive factors considered while assigning the credit rating:
- considerable volumes of asset and own capital growth in the last four years, amounting at the end of 2004 to 16,420,800 UAH and 6,924,900 UAH correspondingly, as well as an increase of sales net weight that grew 2.5 times during four years and amounted to 30,448,600 UAH at the end of 2004;
- high liquidity indices, which have tended to grow over the last three years;
- volume of the issue is equal to one-sixth of the sales net volume in 2004 and one-third of own capital.
Negative factors considered while assigning the credit rating:
- low net profit in relation to high sales volumes;
- huge competitiveness caused by market saturation;
- irregularity of cash flows resulting from the seasonal nature of the issuer’s business in the Autonomous Republic of Crimea.
